Every week millions of people around the IT means customers have: The chips now embedded in everything
world come to shop in one of Marks and from toasters to automobiles to stoplights
Spencer’s 651 stores or franchises – a s more choice are also likely to go on the blink. (Irish
IRELAND turnover of £4bn makes the company the s greater value for money Times 5.6.98)
fourth biggest retailer in the world.
IT has allowed the company to:
This retailing success story began in 1884 The new system is easy to use and will
when Michael Marks and Tom Spencer s hold less stock in reserve improve customer service and enhance the
launched a joint retailing venture in s sell stock more quickly flow of information within the organisation.
Leeds. By 1930, Marks and Spencer was s react faster to growing buying trends. By the year 2000, all M&S stores in Europe
selling food, clothing and other goods in will feature PoS 2000 tills.
200 stores all over Britain. For Marks and M&S uses technology in many different
Spencer, value for money and high-quality areas. Currently, the main development is The new system will be quicker and
service were integral components of with the PoS 2000 (Point of Sale 2000) quieter than its predecessors, passing on a
success. tilling system, which is one of the new wide variety of benefits to consumers and
generation of electronic tilling systems. staff, including:
Since the first international expansion in
1975, M&S now has 286 stores in the UK
and 87 more in key retailing markets such
as Ireland, France, Germany, Spain, the
Netherlands, Belgium, Hong Kong and
Canada. There are also eighty-five
franchise stores in locations such as the
Bahamas, Cyprus, Hungary, Israel,
Singapore and Thailand. This expansion is
Retailing ongoing, with the store network developing
rapidly and the introduction of innovations
aimed at increasing profits into the 21st
century. Grafton Street Store.
technology, it is essential that M&S
st Marks and Spencer (Ireland) Ltd opened its Challenges in Irish Retailing
for the 21 first store in Mary Street, Dublin in 1979.
This was followed nine years later by the
opening of the Grafton Street store in
Dublin and a store in Cork. In September
Marks and Spencer Ireland has a stated
commitment to high-quality products, first-
matches the skills and abilities of
individuals with new and existing job
opportunities. One aspect of M&S
recruiting is the targeting of school-
leavers and graduates to fill a wide
class service and value for money. This range of positions.
1996, the store in Grafton Street relocated to
guarantee is a trademark of its retailing s The elimination of till keys. The shop
a substantially larger store formerly Brown
Century Thomas, also on Grafton Street. The Cork
store underwent a further development in
1997. In 1998, the history of Marks and
operation. Retailing is an industry where
businesses sell a specific range of products to
customers with whom they have contact on a
day-to-day basis.
s European Monetary Union – The new
common currency will see many changes
in the retail industry. The challenge for
M&S is to ensure the transition to the
PoS 2000
PoS 2000 is an innovative form of retail
technology. Staff are now using this new
assistant will no longer have to turn a key
to access the till. A card and password
will be used instead.
Spencer in Ireland was brought up-to-date s More durable machines resulting in
euro is as smooth as possible. This issue electronic tilling instead of conventional cash
when the new development of the Mary As M&S and the retailing sector in general registers. By introducing this system, M&S fewer till breakdowns.
will be explored in more detail later.
Street store came on stream and the fourth expands, new challenges have emerged. aimed to replace obsolete technology in order
store opened in The Liffey Valley Shopping These relate to: s Intuitive tills which will make the work of
to support future business needs.
Centre, West Dublin (October 1998). Innovations in Retailing the operator more efficient as they guide
s A new type of customer – As more and Technology The existing tills in stores were costly to the user through the appropriate steps.
This case study looks at: more retailers move into the Irish market maintain and repair. In addition, they were not s On-line help service, which means staff
consumers are becoming increasingly compatible with the Year 2000 problem – a
s The challenges for Marks and Spencer sophisticated in their choices. M&S must Today, technology is one of the main drivers can avail of the relevant problem-solving
computer bug which may make computers information on the new till instead of
Ireland in an evolving Irish retailing respond to this new breed of discerning of many industries - and retailing is no malfunction when the year 2000 comes around.
industry customers in order to stay ahead. exception. Technology helps to improve the calling for help from a supervisor.
structure of an organisation, enhancing the s A facility where the system can be updated
s The importance of technology in s Product development – This is decision-making and planning processes at Year 2000 problem to be compatible with new types of credit
retailing essential in driving M&S further ahead all levels. It also allows for increased or the Y2K bug cards or other financial service innovation.
of the competition. Shopping trends efficiency, thereby allowing management to The new system can accept the Laser card,
s How M&S is preparing for European change – one example is the growing maximise the resources at their disposal. which the old tills could not.
Monetary Union and the euro shift towards convenience products. The Year 2000 problem, or Millennium Bug,
Appropriate innovations in product is an imminent computer crisis resulting from s Faster and more accurate sales and stock
s M&S’s approach to training and range can make M&S an even more Marks and Spencer Ireland knows how the fact that most computers understand dates reports, which allow management and
development attractive shopping destination. innovative technology can aid the expansion as a sequence of six digits, two each for supervision to react more quickly to
and improvement of its business. It is one of month, day and year. As the century turns, changes in the marketplace. This allows
s the leading users of information technology
Business 2000 s Management skills in the retail Recruitment – With more and more computers will think that the year 2000 - for maximising profitability and tailoring
environment. outlets and an increase in the use of in the retailing industry. represented as 00 – is actually the year 1900. the business to suit the customer.
MAIN MENU PREVIOUS NEXT PRINT QUIT
Instore-Ordering development looks at the longer-term of M&S training staff guided teams of Development takes the form of appraisals, Technology plays an ever-increasing role
Another innovative development in Marks career prospects for employees and their eight through PoS 2000. where staff contributions are analysed and in retailing, a fact which Marks and
and Spencer Ireland concerns instore potential for the future. the career direction staff may wish to take Spencer Ireland has recognised. The
ordering. The training was ‘hands on’ and practical. is discussed. M&S runs a wide variety of company’s new tilling system will make
Both training and development will: This allowed trainees to become familiar technical and management development life easier for staff and will facilitate a
It is very satisfying when a customer sees an with the new technology. Generally, staff courses each year. These include: smoother operation procedure at the
item in the store that isn’t available in their s improve the skills base of an enterprise, check-out for the customer. To date, Marks
are trained by other staff on the sales floor.
size and finds that it can be ordered by the which in turn will increase productivity s exercises experimenting with different and Spencer Ireland has introduced state-of-
This helps them to learn swiftly and
store. This effectively means that customers management styles and skills the-art retail technology and is recognised as
s give employees more confidence, effectively, while building team spirit. By a leader in this field.
are not shopping in one store but in all the
leading to enhanced job satisfaction the time the system was introduced, all s videos on interviewing skills
stores in the Marks and Spencer Ireland
staff members were fully trained in the use M a rk s a n d Sp e n c e r Ire la n d w ill b e
chain. The new technology allows customers
s have a positive influence on profit of PoS 2000. s an interactive computer-based course prepared for the European currency as its
to have any M&S product delivered to their
local store within forty-eight hours. Instore- margins as an organisation becomes on stock replenishing systems. plans to ensure that the transition will be a
better able to achieve objectives. In addition to training on PoS, M&S smooth one are well advanced. Its training
Ordering now represents 3.5 per cent of sales.
conducts ongoing training in: All these programmes are designed to aid the and development programmes are ongoing
Technology has been translated into a service
M&S has a strong tradition in training and training and development of M&S staff. and will see the staff of Marks and
that is a perceived benefit for the customer. development, which is firmly rooted in the Spencer Ireland well prepared for change.
s Health and safety – to train people in
practical realities of working for the
Gearing up for EMU company. This must be ongoing due to the first aid and safe working practices Management Skills There is no room for complacency in a
speed with which retailing is changing, for the Future highly competitive retail environment.
particularly with regard to technological s National Vocational Qualifications (NVQ) M&S will stay ahead of competition by
Like many other businesses, Marks and advances. – to enable staff to obtain certificates in focusing on customer requirements and
Spencer Ireland is already preparing for Management skills have taken on a new
retail sales dimension in the 21st century. Traditionally, keeping up to date with the technological
the European Monetary Union. EMU will advances that can better satisfy its
see a common European currency, the M&S and Training these skills are ones that managers use in
With the implementation of PoS 2000, the s Interview techniques – to help recruit overseeing all aspects of business, including customers’ needs.
euro, come into force on a limited level
from January 1999 and officially on training of staff to use this new technology staff successfully. stock control, finance and human resources.
January 1st 2002 among participating EU was a high priority.
countries. One country that will not be M&S and Development At M&S, retail managers are motivated by
involved in the first phase of EMU is the Staff were trained during 1998 and M&S knows that it is not enough to train the need to achieve results but are also TASKS AND ACTIVITIES
UK. This means that Ireland will be one of informed, through leaflets and posters, of concerned with how to achieve them. Today,
staff in specific skills and that a long-term
M&S’s testing grounds for the euro in what PoS 2000 was and when it would be staff management skills combined with new
arriving. approach to the careers of its employees is Outline the challenges for M&S in an
Sandra Aherne, a Training Co-ordinator, Europe. technology bring benefits for customers. But 1
needed. To this end, senior managers are evolving retail industry.
had this to say about the new PoS tilling for managers in such areas, more is needed
Before the new tills were introduced, constantly on hand to provide advice on than just scientific knowledge and ability. A
system: M&S is making plans for the changes that
will take place when the euro arrives: staff were put on training programmes broader career and management issues for good example of this is the work of the Discuss the importance of technology
at in-store training centres. Two members staff. Information Technology Management team. 2 in relation to retailing.
When management first informed us about
the new developments with the tilling s A working party of various staff
system, as training co-ordinators we were members has been set up within M&S in All staff, from sales assistants to senior List the benefits of PoS 2000 for M&S
attracted to the idea of a more sophisticated Ireland to examine the issues involved in management, are recruited on the eight 3 staff and customers.
form of technology. Then when we actually the changeover. core skills:
attended a conference and saw what PoS Discuss how the changes related to
could do we were all very enthusiastic. The s The PoS 2000 system has been specially s Planning and organising 4
s Job motivation EMU will affect M&S customers.
prospect of working with and training staff adapted to read and print the euro sign. It
on the new system was a great challenge. will also have the capacity to accept the s Leadership
euro when it is introduced. s Awareness and teamwork Take one company in your locality
s Adaptability
5 and investigate how it is preparing
The training co-ordinators went on a three
day course where we learned all about the s Dual pricing is a new EU directive which s Assertiveness for EMU.
new system and how to train staff. This M&S will plan for by organising dual- s Analytical consideration
three days of training had then to be price merchandise/tickets. These allow s Commercial creativity. Tra in in g a n d d e v e lo p me n t a re
translated into four hours with each staff for local and euro currency prices to be 6 important aspects of M&S policy
member. The staff adapted to the new displayed, thus helping customers to These skills are adapted to suit the various towards staff. Outline the ways in which
system easily and were greatly helped by relate to the euro changeover. levels in the company and bring Marks and the company engages in this.
the intuitive elements of the technology, Spencer Ireland into the new millennium.
whereby prompts appear on the screen to Training and Development List some important management skills.
guide the operator. Conclusion 7 Discuss the value of communication
For Marks and Spencer Ireland, the Training and development are two of the skills in management.
system is a great improvement. For most important aspects of human resource As shopping habits change and consumer No liability shall attach to Marks & Spencer (Ireland) Ltd for any
me, as a training co-ordinator, the management, which is defined as the demands become more sophisticated, errors or omissions in this case study.
training process is much easier and it is management of all issues relating to Marks and Spencer Ireland is constantly While every effort has been made to ensure the accuracy of
great to know that we are at the cutting people at work. Training is concerned with examining new and innovative ways to information contained in this case study, no liability shall attach
to either The Irish Times Ltd or Woodgrange Consultants Ltd for
edge of new retailing technology. passing on specific skills to employees, while POS 2000 staff training. meet these challenges. any errors or omissions in this case study.
Business 2000
MAIN MENU PREVIOUS NEXT PRINT QUIT